Marketing The Core Canadian 4th

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) ________ markets consist of goods, services, and ideas that are purchased for personal use.
A) Business B) Consumer C) Government D) Industrial
Answer: B

2) Sam buys stationery items such as staplers, pens, printing paper, and printer cartridges from Staples.
She buys these items for writing personal notes and for printing letters to her friends. In this
instance, the stationery items that Sam purchases are part of the:
A) consumer market. B) business market.
C) reseller market. D) government market.
Answer: A

3) ________ involves products that are purchased either to run a business or to be used as a component
in another good or service.
A) The consumer market B) The business market
C) The psychographic market D) Product differentiation
Answer: B

4) A company buys a new computer to upgrade its office technology and to ensure that its business
runs efficiently. This is an example of ________.
A) a psychographic market B) a business market
C) product differentiation D) a consumer market
Answer: B

5) ________ involves aggregating prospective buyers into groups that have common needs and
respond similarly to marketing programs.
A) Market segmentation B) Market aggregation
C) Undifferentiated marketing D) Psychographics
Answer: A

6) Which of the following is true about market segmentation?

A) It aggregates prospective buyers into groups that are relatively heterogeneous.
B) It aggregates prospective buyers into groups that have common needs and respond similarly to
marketing programs.
C) Mass marketing obstructs the process of market segmentation.
D) It refers to the strategy of positioning a product apart from the competition in the eyes of
consumers.
Answer: B

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7) Market segmentation:
A) refers to aggregating buyers who respond differently to a marketing program.
B) involves groups that are relatively homogeneous in terms of consumption, attitudes, and buying
behaviour.
C) refers to the positioning of a product apart from the competition in the eyes of the consumers.
D) creates two markets—the market for elastic goods and that for inelastic goods.
Answer: B

8) Yen Research, a marketing research firm, adopts a strategy to position its client's newly launched
product apart from the competition in the eyes of consumers. This strategy is referred to as
________.
A) segment marketing B) mass marketing
C) repositioning D) product differentiation
Answer: D

9) Mass marketing:
A) involves focusing efforts on a limited segment in the market.
B) is the most common form of segmentation followed by large companies.
C) refers to designing specific products and services to meet the needs of different target groups.
D) involves marketing a product to the entire market with no differentiation at all.
Answer: D

10) ________ marketing involves a product being marketed to all individuals in the market with no
differentiation at all.
A) Mass B) Niche C) Segment D) Micro
Answer: A

11) Natural gas being marketed without differentiation from either a product or marketing perspective is
an example of ________.
A) mass marketing B) differential marketing
C) individualized marketing D) product differentiation
Answer: A

12) Segment marketing:

A) involves focusing efforts on a limited segment in the market.
B) involves designing specific products and services to meet the needs of different target groups.
C) refers to marketing by customizing offers and products to fit individual needs.
D) exists in a limited capacity today due to the competitiveness of the market and the need for
marketers to specifically address consumer needs with their offerings.
Answer: B

13) ________ marketing involves designing specific products and services to meet the needs of different
target groups.
A) Segment B) Niche C) Micro D) Mass
Answer: A

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Kellogg's, the cereal brand, began its business with only one product, Kellogg's Corn Flakes. The company
marketed this product to all segments—children, adults, families, and so on. Today, however, Kellogg's has
multiple cereal products and brands that are targeted to meet the needs of different market segments. Froot
Loops and Frosted Flakes are marketed for children and families who loved pre-sweetened cereals. All Bran and
Special K are marketed to mainstream health-oriented adults. Kellogg's is also marketing its brand Kashi to a limited
market segment, concentrating on health enthusiasts.

14) Which of the following approaches did Kellogg's adopt for its first product, Kellogg's Corn Flakes?
A) mass marketing B) niche marketing
C) segment marketing D) individualized marketing
Answer: A

15) Kellogg'stargeted different groups of consumers for products such as All Bran, Froot Loops, and
Frosted Flakes. This is an example of ________.
A) mass marketing B) niche marketing
C) repositioning D) segment marketing
Answer: D

16) Which of the following approaches did Kellogg's adopt for its brand Kashi?
A) niche marketing B) segment marketing
C) individualized marketing D) mass marketing
Answer: A

17) Which of the following is true of segment marketing?

A) Segment marketing involves a product being marketed to the entire market without any
differentiation.
B) Segment marketing allows a company to focus its efforts on a limited segment in the market.
C) Segment marketing involves designing specific products and services to meet the needs of
different target groups.
D) A segmented approach cannot be adopted by companies in business-to-business market.
Answer: C

18) When Procter & Gamble introduced Crest toothpaste, the first fluoride toothpaste, it was intended
for use by children and was therefore given a child-appealing bubble-gum flavour. Later the same
basic formula was given a fresh, minty flavour to appeal to adults. What is this marketing strategy
called?
A) micro marketing B) niche marketing
C) segment marketing D) mass marketing
Answer: C

19) A
company focuses its efforts on a limited segment in the market with its product. This type of
market segmentation is referred to as ________.
A) mass marketing B) niche marketing
C) segment marketing D) repositioning
Answer: B

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20) Which of the following is true of niche marketing?
A) It involves designing specific products and services to meet the needs of different target
groups.
B) It enables a marketer to customize offers and, in some cases, products to fit individual needs.
C) It involves a product being marketed to the entire market with no differentiation at all.
D) It is a type of market segmentation that allows a company to focus its efforts on a limited
segment in the market.
Answer: D

21) Look, a cosmetic company, overtakes Nature, a small cosmetic franchise. Nature manufactures and
sells cosmetics that are made of 90 percent natural ingredients, and are not animal-tested. It has
always targeted a special audience and has focused its efforts on a limited segment in the market.
Look decides to promote products by Nature as a totally separate brand, understanding that the
products interest and attract a special segment of the market. This is an example of ________.
A) family branding B) niche marketing
C) segment marketing D) individualized marketing
Answer: B

22) Smaller firms often adopt ________ to compete with larger corporations that dominate categories
and different target groups.
A) individualized marketing B) mass marketing
C) niche marketing D) segment marketing
Answer: C

23) Dished, a relatively new product, experiences an increase in sales with its super-concentrated,
non-toxic, biodegradable dishwashing liquid. It has successfully carved its place against products
from larger corporations such as P&G and Unilever. Dished focuses on producing goods that are
good for the environment, people, and pets. It is also five times more concentrated than
conventional dishwashing liquids and does not need hot water for cleaning. It appeals to a target
group of consumers who want to purchase products that are environmentally friendly, safe to use,
and efficient. Which of the following approaches has Dished used to compete with corporations
such as P&G and Unilever?
A) segment marketing B) micro marketing
C) niche marketing D) mass marketing
Answer: C

24) ________ marketing involves customizing offers and products to fit individual needs.
A) Prestige B) Individualized C) Mass D) Niche
Answer: B

25) YourIdea.com is an online shopping portal that allows its customers to personalize mugs, pens, and
photo frames. Which of the following approaches is the company following?
A) mass marketing B) individualized marketing
C) niche marketing D) segment marketing
Answer: B

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26) David had purchased vintage DVDs on VideosOnline.com. The website started sending David
product alerts whenever it received similar DVDs. This is an example of ________ marketing.
A) segment B) mass C) individualized D) niche
Answer: C

27) A marketer is in the process of market segmentation. He estimates the sales and the revenue
expected, and also plans the corporate social responsibility initiatives for the company. Which step
of market segmentation is the marketer at?
A) reviewing strategic company objectives
B) identifying specific business unit objectives
C) identifying consumer/customer needs and common characteristics in the market
D) clustering common consumer/customer variables to create meaningful market segments
Answer: A

28) The owners of Greg & Greg, a newly founded company, try to identify opportunities and examine
whether the company has the strength to compete in a segment that may already be well-served by
the competition. This process is called ________.
A) SWOT analysis B) strategy identification
C) market segmentation D) positioning statement
Answer: A

29) Marketers at Greenwood Automobiles are planning to market the company's newly launched smart
car. They review company objectives, identify specific business unit objectives, and identify
customer needs and characteristics in the market. They try to identify the segments that exist in the
market. Which of the following will help in identifying these segments?
A) Identify marketing programs and budget requirements needed for this segment.
B) Cluster common consumer/customer variables to create meaningful market segments.
C) Identify the segment that best meets strategic company objectives.
D) Conduct a SWOT analysis.
Answer: B

30) Which step in market segmentation should a marketer take immediately after conducting a SWOT
analysis?
A) Cluster common consumer variables to create meaningful market segments.
B) Identify specific business unit objectives.
C) Identify the segment that best meets strategic company objectives.
D) Identify consumer needs and common characteristics in the market.
Answer: C

31) In a SWOT analysis, product image is an example of ________.

A) threats B) strategies C) strengths D) opportunities
Answer: C

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32) Competition, in a SWOT analysis, is an example of ________.
A) opportunity B) strength C) threat D) weakness
Answer: C

33) An e-commerce company realizes that its customers are moving to competitors. Marketers cite that
the company has not updated its technology, while the competitors have. In a SWOT analysis, the
competitor is an example of a(n) ________.
A) opportunity B) threat C) strength D) weakness
Answer: B

34) A ________ descriptor of a target market looks at where a target market lives using variables such
as country, region, province, city size, and type of location such as urban, suburban, or rural.
A) psychographic B) demographic C) behaviouristic D) geographic
Answer: D

35) Geographic descriptor analyses:

A) why consumers buy a product, the product benefit, how the product is used, and whether
consumers are brand loyal in their purchase behaviour.
B) where a target market lives using variables such as country, region, province, city size, and type
of location such as urban, suburban, or rural.
C) ranges for age, gender, family life cycle, income, occupation, education, ethnic background,
and home ownership for the main target market.
D) consumer attitudes to life, their personalities, general interests, opinions, and activities.
Answer: B

36) Consumers in Western Canada tend to buy larger packages of flour than in Ontario and Quebec due
to a greater incidence in baking. This is an example of ________.
A) demographics B) psychographics C) behaviouristics D) geographics
Answer: D

37) Which of the following is true of a geographic descriptor?

A) It involves understanding consumer attitudes to life, their personalities, and general interest.
B) It includes identifying the income, occupation, and education of the main target market.
C) It involves identifying the target market using variables such as region, country, and province.
D) It includes identifying ranges for age, and gender.
Answer: C

38) Which of the following is a demographic variable?

A) income B) usage C) attitude D) city size
Answer: A

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 39) Modern Maturity magazine is a publication that is sent to all CARP members who by definition
have to be at least 50 years old to become members. The market segment for Modern Maturity
magazine was defined by ________.
A) usage patterns B) demographic characteristics
C) usage rates D) behaviouristics
Answer: B

40) SmoothKurls wants to introduce a new brand of shampoo for which it wants some consumer data.
Its researchers decide to look at demographic variables before launching the shampoo. Which of the
following is a demographic variable that the marketers will look at?
A) gender B) usage rate C) personality D) brand loyalty
Answer: A

41) Demographic profile of a target market includes identifying:

A) why consumers buy a product, the product benefit, how the product is used, and whether
consumers are brand loyal in their purchase behaviour.
B) where a target market lives using variables such as country, region, province, and type of
location.
C) ranges for age, gender, family life cycle, income, occupation, and education.
D) consumer attitudes to life, their personalities, general interests, opinions, and activities.
Answer: C

Motario markets many of its brands based on age and gender requirements. Motario W is a calcium supplement created f
women, while Motario Kids is geared to children between the ages 2 and 12.

42) Motario uses ________ to identify ranges for age, gender, family life cycle, income, occupation,
education, ethnic background, and home ownership for its main target market.
A) psychographics B) behaviouristics C) demographics D) ethnographics
Answer: C

43) Which form of market segmentation has Motario adopted?

A) individualized marketing B) niche marketing
C) segment marketing D) mass marketing
Answer: C

44) Motario W is created for women, while Motario Kids is targeted to children from 2 to 12 years of
age. This is an example of ________.
A) demographics B) psychographics C) behaviouristics D) geographics
Answer: A

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This table charts examples of target market variables in Canadian consumer markets.

45) Which of the following is an example of a geographic descriptor?

A) A perfume manufacturer markets its anti- deodorant to "Feel Fresh This Summer."
B) A television company marketing its newly launched range of LCDs as a source of family
entertainment.
C) A ladies' handbags manufacturer launches a range of wallets and briefcases for men.
D) A furniture manufacturer promotes its retro-style furniture in British Columbia, and its
contemporary furniture in Atlantic Canada.
Answer: D

46) Which of the following is an example of demographic descriptor?

A) Tavern promotes its newly launched smart car as a convenient mode of transport for urban
dwellers.
B) Thompson Travels Ltd. markets its holiday packages as ideal for honeymooners and families.
C) Fruitilicious promotes its fruit drink as a source of nutrition for everyone.
D) J&M Sports down jackets are promoted in Alberta just before Christmas.
Answer: B

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47) Which of the following is an example of a psychographic descriptor?
A) A bank markets its home loans as a viable option for those who "are fed up with paying the
rent."
B) Ready to Eat meals are advertised as the quick and healthy solution for working wives and
mothers.
C) Johnson & Johnson baby oil is marketed for infants.
D) Water, a mildly fragrant perfume, is endorsed by a famous Hollywood actress renowned for her
style.
Answer: D

48) Which of the following is an example of a behaviouristic descriptor?

A) A retail supermarket markets itself as the one-stop shop for household necessities at an
affordable price.
B) Vanzup markets its privilege services to young professionals.
C) Pepsi-Cola is marketed as the energetic cola for those with a youthful attitude to life.
D) PediaSure promotes its high-protein drink as a health drink for growing children.
Answer: B

49) A psychographic descriptor analyses:

A) usage rates of a product by consumers.
B) ranges for age, gender, family life cycle, income, occupation, education, ethnic background,
and home ownership for the main target market.
C) consumers' attitudes to life, their personalities, general interests, opinions, and activities.
D) a target market using variables such as country, region, province, city size, and type of location.
Answer: C

50) ________ variables are central to understanding the delight points of consumers and what gives
them that extra spark.
A) Behaviouristic B) Geographic C) Psychographic D) Demographic
Answer: C

51) Y-canis marketed as the energetic drink for those with a youthful attitude to life. This is an example
of ________.
A) geographics B) ethnographics C) psychographics D) demographics
Answer: C

52) A TV channel for teenagers determined that their target group had a love of social media, computer
games, YouTube channels, and spending time on the Internet. The channel then created Facebook
pages and interactive websites to engage with their audience. The channel used ________ as its
strategy to market.
A) demographics B) behaviouristics C) geographics D) psychographics
Answer: D

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53) ________ looks at why consumers buy a product, the product benefit, how the product is used, and
whether consumers are brand loyal in their purchase behaviour.
A) Behaviouristics B) Demographics C) Geographics D) Ethnographics
Answer: A

54) Which of the following is true?

A) A company uses behaviouristics to market many of its products on the basis of age and gender
requirements.
B) Image-based products gear much of their marketing efforts to geographic variables.
C) The cellphone industry often uses psychographics to market to its customers, focusing on the
key benefits that consumers require in a cellphone.
D) The behaviouristics element directly refers to how consumers use the product.
Answer: D

55) What kind of target market information would usage rate of cellphones help to gather?
A) geographics B) behaviouristics C) psychographics D) ethnographics
Answer: B

56) Acredit card company markets basic services to those who apply for its students' card. These cards
have a low interest rate on outstanding balance, but have a very limited credit line. For its
high-salaried clients who use credit cards more often, the company provides a wider range of
services such as travel insurance and emergency assistance, and gives them a higher credit limit, but
with a higher interest rate on outstanding balances. Which of the following is the credit card
company using to market different services to the two groups?
A) psychographics B) demographics C) behaviouristics D) ethnographics
Answer: C

57) Gordon & Brothers Ltd., a watch manufacturing company, decides that it wants to establish the
impression of its new range of watches in consumers' minds as a classic must-have for any occasion.
This is referred to as ________.
A) product repositioning B) product positioning
C) positioning map D) niche marketing
Answer: B

58) Product positioning refers to:

A) the impression of the product you want to establish in consumers' minds relative to their needs
and also in contrast to the competition.
B) revamping of the product and the various elements of the marketing mix.
C) visual representations of how products or product groups are positioned within a category to
consumers/customers.
D) the tool that identifies the main reasons the target market buys a product and what sets it apart
in the market.
Answer: A

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59) Acompany tries to identify the main reasons its target market buys its products and what sets it
apart in the market. Which of the following would it use to do so?
A) product positioning B) positioning statement
C) repositioning D) positioning map
Answer: B

60) A positioning statement can be defined as:

A) the impression of the product you want to establish in consumers' minds relative to their needs
and also in contrast to the competition.
B) analysing why consumers buy a product, the product benefit, how the product is used, and
whether consumers are brand loyal in their purchase behaviour.
C) the tool that identifies the main reasons the target market buys a product and what sets it apart
in the market.
D) visual representations of how products or product groups are positioned within a category to
consumers/customers.
Answer: C

61) ________ is often done with a revamping of the product and the various elements of the marketing
mix.
A) Repositioning B) Product positioning
C) Replacing D) SWOT analysis
Answer: A

62) Repositioning refers to:

A) analysing why consumers buy a product, the product benefit, how the product is used, and
whether consumers are brand loyal in their purchase behaviour.
B) the revamping of the product and the various elements of the marketing mix.
C) the impression of the product you want to establish in consumers' minds relative to their needs
and also in contrast to the competition.
D) the visual representations of how products or product groups are positioned within a category
to consumers/customers.
Answer: B

63) Positioning maps are also known as ________.

A) market analyses B) strategy maps C) product maps D) perceptual maps
Answer: D

64) Amarketing manager and his team use visual representation to understand how products or product
groups are positioned within a category to consumers. These representations are referred to as
________.
A) market maps B) product representations
C) strategy maps D) perceptual maps
Answer: D

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 65) Which of the following purposes do positioning maps serve?
A) They are used to crystallize the image for marketers so that they can design a marketing mix
that aligns with the product's positioning.
B) They help marketers reveal gaps in the market where consumers may be underserved, while
also highlighting the competitive nature of the category.
C) They help researchers analyse why consumers buy a product, the product benefit, how the
product is used, and weather consumers are brand loyal.
D) They help revamp the product and the various elements of the marketing mix.
Answer: B

66) Positioning maps can:

A) identify the main reason the target market buys a product and what sets it apart from the
market.
B) identify four elements: product name, product category, reasons the target market buys product,
and what sets the product apart from competition.
C) visually represent categories within a market, including product and brand offerings within a
segment.
D) revamp a product and the various elements of the marketing mix.
Answer: C

A regular fast-food chain realizes that it is viewed only as a lunch or dinner destination. Having known that the
consumption of coffee as a breakfast item has increased among the target market, the chain aims at launching
itself as a breakfast destination as well. According to its research, consumers look for a quick breakfast meal
before they begin their day. The chain revamps the look of its restaurants and menus, and includes coffee, tea, and
breakfast sandwiches. The marketers aim to determine what kind of impression of the breakfast services they want to
establish in the consumer's minds.

67) In
a SWOT analysis, the trend in consumption of coffee would be a(n) ________ for the fast-food
chain.
A) threat B) strength C) weakness D) opportunity
Answer: D

68) When marketers of the fast-food chain attempt to create an impression of the new offering in the
minds of the consumers, and in contrast to the competition, it is referred to as ________.
A) a positioning statement B) a positioning map
C) product positioning D) repositioning
Answer: C

69) The fast-food chain revamps its interiors and its menus to present itself as a breakfast destination for
its consumers, along with its original lunch and dinner services. This is an example of ________.
A) behaviouristics B) a positioning statement
C) positioning maps D) repositioning
Answer: D

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 70) Which of the following would have helped the fast-food chain identify a gap in the market and
realize that their customers are being underserved in the breakfast category?
A) demographic information B) geographic information
C) product positioning D) positioning maps
Answer: D

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

71) The consumer market consists of products that are purchased either to run a business or to be used
as a component in another good or service.
Answer: True False

72) Mass marketing exists in a limited capacity today due to the competitiveness of the market and the
need for marketers to specifically address consumer needs with their offerings.
Answer: True False

73) A segmented approach cannot be followed by companies in the business-to-business market.

Answer: True False

74) Segment marketing involves designing specific products and services to meet the needs of different
target groups.
Answer: True False

75) In individualized marketing, marketers use database technology to track consumer purchases and
predict interests and future purchases.
Answer: True False

76) Clusters will identify the segments that exist in the market.
Answer: True False

77) Once a thorough market assessment has been conducted, a marketer is tasked with identifying the
segment that best meets strategic company objectives.
Answer: True False

78) A geographic descriptor of a target market looks at ranges for age, gender, family life cycle, income,
occupation, education, ethnic background, and home ownership for the main target market.
Answer: True False

79) A demographic profile of a target market includes ranges for age, gender, family life cycle, income,
occupation, education, ethnic background, and home ownership for the main target market.
Answer: True False

80) PediaSure is an energy drink created for small children. This is an example of a geographic target
market profile.
Answer: True False

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 81) Demographic variables are central to understanding the delight points of consumers and what gives
them that extra spark.
Answer: True False

82) Psychographics involves understanding consumer attitudes to life, their personalities, general
interests, opinions, and activities.
Answer: True False

83) Psychographic information is based on the primary research that marketers have conducted to gather
insights on their consumers.
Answer: True False

84) Psychographicslooks at why consumers buy a product, the product benefit, how the product is used,
and whether consumers are brand loyal in their purchase behaviour.
Answer: True False

85) Usage rate of products by consumers plays an important role in behaviouristic information.
Answer: True False

86) Productpositioning refers to the impression of the product one wants to establish in consumers'
minds relative to their needs and also in contrast to the competition.
Answer: True False

87) Positioning statements identify the main reasons the target market buys the product and what sets it
apart in the market.
Answer: True False

88) Repositioning refers tovisual representations of how products or product groups are positioned
within a category to consumers/customers.
Answer: True False

89) Positioning maps are also known as perceptual maps.

Answer: True False

90) Positioning maps help reveal gaps in the market where consumers may be underserved, while also
highlighting the competitive nature of the category.
Answer: True False

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

91) Briefly explain the concept of market segmentation.

Answer: Market segmentation involves aggregating prospective buyers into groups that have common
needs and respond similarly to marketing programs. These groups are relatively homogeneous
and consist of people who are fairly similar in terms of their consumption behaviour, attitudes,
and target market profiles.

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92) What is product differentiation?
Answer: There is normally more than one firm vying for the attention of prospective buyers in a
market. This has resulted in marketers following a strategy of product differentiation to
position their products apart from the competition in the eyes of consumers. It is important to
note that product differentiation does not mean a product has to be better than the competition.
Marketers position their products as best they can to meet the needs of their target consumers.

93) What is segment marketing? Give an example of segment marketing by a company.

Answer: Students' examples may vary.

Segment marketing involves designing specific products and services to meet the needs of different
target groups. This form of market segmentation is the most common form of segmentation followed b
large companies. An example of this approach can be seen in the breakfast cereal category with
companies such as Kellogg's. Kellogg's has a host of breakfast cereals that appeal to different
market segments. There are products that appeal to different demographic and psychographic
groups. For example, there are adult-oriented, healthy cereals; fun, pre-sweetened children's
cereals; and wholesome family cereals that are neither too healthy nor too sweet.

94) Explain how niche marketing is different from segment marketing.

Answer: Segment marketing involves designing specific products and services to meet the needs of
different target groups. This form of market segmentation is the most common form of
segmentation followed by large companies. The type of market segmentation that allows a
company to focus its efforts on a limited segment in the market is called niche marketing.
A niche market brand does not try to sell to all market segments, but instead sells a line geared to a
specific and small group of consumers.

95) What is individualized marketing? How does technology affect individualized marketing?
Answer: New technology has boosted individualized marketing as a segmentation option for marketers.
The Internet allows marketers to use database technology to track consumer purchases and
predict interests and future purchases. This enables a marketer to customize offers and, in
some cases, products to fit individual needs.

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 96) List the steps involved in market segmentation.
Answer: The process of segmenting a market for both the consumer and business-to-business markets is divided
into ten steps. These are:

1. Review strategic company objectives.

2. Identify specific business unit objectives.
3. Identify consumer/customer needs and common characteristics in the market.
4. Cluster common consumer/customer variables to create meaningful market segments.
5. Conduct SWOT analyses on the segments to determine strengths, weaknesses, opportunities, and
threats.
6. Identify the segment that best meets strategic company objectives.
7. Identify marketing programs and budget requirements needed for this segment.
8. Create a sales forecast for this segment.
9. Conduct a profit-and-loss financial analysis for this segment.
10. Check financial forecasts against specific business unit objectives.

97) What are the four main variables that marketers look at to define their target markets?
Answer: Marketers define their target markets by looking at four main variables: (1) geographics, (2)
demographics, (3) psychographics, and (4) behaviouristics.

98) Explain the variables used to segment target markets using geographics.
Answer: A geographic descriptor of a target market looks at where a target market lives using variables
such as country, region, province, city size, and type of location such as urban, suburban, or
rural.

99) What is product positioning? What is a positioning statement?

Answer: Product positioning refers to the impression of the product you want to establish in consumers'
minds relative to their needs and also in contrast to the competition. A positioning statement is
a tool that identifies the main reasons the target market buys a product and what sets it apart in
the market.

100) What is repositioning? Give an example of a repositioning effort by a company.

Answer: Students' examples may vary.

Repositioning is often done with a revamping of the product and the various elements of the marketing
mix. McDonald's provides a recent example of a repositioning effort that includes interior and exterior
store design, healthier menu choices, product ingredient changes, new website components, and focuse
advertising messages. Trans fats are being eliminated from McDonald's products; there are
healthy choices included on the menu; there is a nutrition calculator on its website; and the
store ambience is being modified to be more comfortable and inviting. McDonald's is
repositioning itself as a more engaging fast-food restaurant.

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Answer Key
Testname: UNTITLED73

1) B
2) A
3) B
4) B
5) A
6) B
7) B
8) D
9) D
10) A
11) A
12) B
13) A
14) A
15) D
16) A
17) C
18) C
19) B
20) D
21) B
22) C
23) C
24) B
25) B
26) C
27) A
28) A
29) B
30) C
31) C
32) C
33) B
34) D
35) B
36) D
37) C
38) A
39) B
40) A
41) C
42) C
43) C
44) A
45) D
46) B
47) D
48) B
49) C
50) C
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Testname: UNTITLED73

51) C
52) D
53) A
54) D
55) B
56) C
57) B
58) A
59) B
60) C
61) A
62) B
63) D
64) D
65) B
66) C
67) D
68) C
69) D
70) D
71) FALSE
72) TRUE
73) FALSE
74) TRUE
75) TRUE
76) TRUE
77) FALSE
78) FALSE
79) TRUE
80) FALSE
81) FALSE
82) TRUE
83) TRUE
84) FALSE
85) TRUE
86) TRUE
87) TRUE
88) FALSE
89) TRUE
90) TRUE
91) Market segmentation involves aggregating prospective buyers into groups that have common needs and
respond similarly to marketing programs. These groups are relatively homogeneous and consist of people
who are fairly similar in terms of their consumption behaviour, attitudes, and target market profiles.
92) There is normally more than one firm vying for the attention of prospective buyers in a market. This has
resulted in marketers following a strategy of product differentiation to position their products apart from
the competition in the eyes of consumers. It is important to note that product differentiation does not mean
a product has to be better than the competition. Marketers position their products as best they can to meet
the needs of their target consumers.
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93) Students' examples may vary.

Segment marketing involves designing specific products and services to meet the needs of different target groups.
This form of market segmentation is the most common form of segmentation followed by large companies. An
example of this approach can be seen in the breakfast cereal category with companies such as Kellogg's. Kellogg's
has a host of breakfast cereals that appeal to different market segments. There are products that appeal to
different demographic and psychographic groups. For example, there are adult-oriented, healthy cereals;
fun, pre-sweetened children's cereals; and wholesome family cereals that are neither too healthy nor too
sweet.
94) Segment marketing involves designing specific products and services to meet the needs of different target
groups. This form of market segmentation is the most common form of segmentation followed by large
companies. The type of market segmentation that allows a company to focus its efforts on a limited
segment in the market is called niche marketing.
A niche market brand does not try to sell to all market segments, but instead sells a line geared to a specific and sm
group of consumers.
95) New technology has boosted individualized marketing as a segmentation option for marketers. The
Internet allows marketers to use database technology to track consumer purchases and predict interests and
future purchases. This enables a marketer to customize offers and, in some cases, products to fit individual
needs.
96) The process of segmenting a market for both the consumer and business-to-business markets is divided into ten step
These are:

1. Review strategic company objectives.

2. Identify specific business unit objectives.
3. Identify consumer/customer needs and common characteristics in the market.
4. Cluster common consumer/customer variables to create meaningful market segments.
5. Conduct SWOT analyses on the segments to determine strengths, weaknesses, opportunities, and threats.
6. Identify the segment that best meets strategic company objectives.
7. Identify marketing programs and budget requirements needed for this segment.
8. Create a sales forecast for this segment.
9. Conduct a profit-and-loss financial analysis for this segment.
10. Check financial forecasts against specific business unit objectives.
97) Marketers define their target markets by looking at four main variables: (1) geographics, (2)
demographics, (3) psychographics, and (4) behaviouristics.
98) A geographic descriptor of a target market looks at where a target market lives using variables such as
country, region, province, city size, and type of location such as urban, suburban, or rural.
99) Product positioning refers to the impression of the product you want to establish in consumers' minds
relative to their needs and also in contrast to the competition. A positioning statement is a tool that
identifies the main reasons the target market buys a product and what sets it apart in the market.

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100) Students' examples may vary.

Repositioning is often done with a revamping of the product and the various elements of the marketing mix.
McDonald's provides a recent example of a repositioning effort that includes interior and exterior store design,
healthier menu choices, product ingredient changes, new website components, and focused advertising messages.
Trans fats are being eliminated from McDonald's products; there are healthy choices included on the
menu; there is a nutrition calculator on its website; and the store ambience is being modified to be more
comfortable and inviting. McDonald's is repositioning itself as a more engaging fast-food restaurant.

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